Texas is opening an investigation into a proposed AI data center outside Austin after concerns that the land was set aside as public parkland 25 years ago.
Texas Attorney General Ken Paxton announced theinvestigation on Sept. 17, saying the property was placed in a trust for future parkland in 1999 but changed hands repeatedly before a Delaware company bought it last year to build a data center.
“I will not allow any person or entity to disregard the rule of law or obligations owed to the public,” Paxton said. “If the Taylor data center development is unlawful, I will do everything in my power to stop it and hold those who have violated the law accountable.”
The attorney general said that in 1999, the Bland family conveyed the property to the Texas
Parks and Recreation Foundation “to be held in trust for future use as parkland” by Williamson County for $10.
The property changed hands several times over the years — including a transfer to the city of Taylor in 2003 for $10 and a 2009 conveyance to the Taylor Economic Development Corporation (TEDC).
From there, the attorney general's office said that in April 2025, TEDC sold the property to NCP Travis TPP Project LLC — the Delaware company behind the proposed Blueprint Projects Data Centers for $10 million.
Because of these sales, Paxton is investigating whether the trust and restriction referenced in the 1999 deed were modified, released or terminated as expressly provided in a granting instrument or as required by law.
Pending the findings, Paxton said that he will seek court intervention to ensure the restriction is not disregarded.
This comes as Texas escalates its data center crackdown over water-use concerns, as Gov. Greg Abbott directed state water officials on Sept. 14 to ensure data centers comply with the state's water-use reporting requirements and to impose legal consequences for past and future failures to comply with state law.
Texas' new data center standards
On June 10, Abbott directed the Public Utility Commission and ERCOT to ensure data centers do not shift the financial and resource burden onto Texans during expansion and construction.
The regulations took effect in July. But after public testimony to state lawmakers revealed gaps in the data the state requested, the state asked for more information. On Aug. 3, Abbott paused construction of new data centers as the state conducted a full audit of proposed data centers seeking to connect to the state grid to ensure they comply with Abbott's June directive.
Since the audit and regulations were announced, more than 40 companies, including Amazon, Google, OpenAI and Anthropic, have publicly said they will comply with Texas' new data center standards.
Mateo Rosiles is the Texas Connect reporter for USA TODAY and its regional papers in Texas. Got a news tip for him? Email him at mrosiles@usatodayco.com.
This article originally appeared on USA TODAY: Texas probes Austin-area data center on land once meant to be a park
